The Trending123 Pattern Scan has identified a symmetrical continuation triangle pattern in Exone (XONE), a small-cap 3D printer that’s been wildly successful since its IPO this year. Year-to-date it’s up 141%, and this pattern could point to even more upside ahead.
Click to Enlarge The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. A symmetrical continuation triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction.
Technical analysts pay close attention to how long the triangle takes to develop to its apex. The general rule is that prices should break out somewhere between three-quarters and two-thirds of the horizontal width of the formation. The break out, in other words, should occur well before the pattern reaches the apex of the triangle. The closer the breakout occurs to the apex the less reliable the formation.Then well before the triangle reaches its apex, the price breaks out above the upper trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior uptrend.
Target Price: $81.00 – $85.00
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership.